ACCENTURE SERVICES P.LD, MUMBAI V. DCIT RG 1(1), MUMBAI

ITA 6374/MUM/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0072 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: misc
• Appeal Filed On: 28-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: POOJA SWAROOP

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) & SHRI PAWAN SINGH (JM) I.T.A. NO. 6374 /MUM/20 16 (ASSESSMENT YEAR 20 15 - 16 ) ACCENTURE SERVICES PVT. LTD. PLANT NO. 3, GODREJ & BOYCE COMPLEX, PHROJSHAH NAGAR OFF. LBS MARG, VIKHROLI(W) MUMBAI - 400 079. PAN : AACCA8997K V S . DCIT, RANGE - 1(1) SMT. K.G. MITTAL AYURVEDIC HOSPITAL BUILDING CHARNI ROAD (W) MUMBAI. ( APPELLANT ) ( RESPONDENT ) A SSESSEE BY SHRI M.P. LOHIA & SHRI JIGNESH SHAH DEPARTMENT BY MS. POOJA SWAR OOP DATE OF HEARING 27 . 0 2 . 201 8 DATE OF PRONOUNCEMENT 27 . 0 2 . 201 8 O R D E R PER B.R. BASKARAN (AM) : - THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 28.7.2016 PASSED BY THE LEARNED CIT(A) - 59, MUMBAI AND IT RELATES TO THE FI NANCIAL YEAR 2014 - 15 RELEVANT TO A.Y. 2015 - 16. THE GRIEVANCE OF THE ASSESSEE IS THAT THE DEMAND RAISED FOR SHORT PAYMENT OF TDS AMOUNTING TO RS.15,00,363/ - FOR FOURTH QUARTER OF F.Y. 2014 - 15 HAS BEEN RAISED WITHOUT GIVING CREDIT FOR EXCESS AMOUNT OF TDS P AID IN SECOND QUARTER OF F.Y. 2014 - 15. 2. THE LEARNED AR SUBMITTED THAT THE ASSESSEE DEDUCTED TDS FROM CERTAIN PAYMENTS MADE TO CERTAIN NON - RESIDENTS IN THE SECOND QUARTER OF F.Y. 2014 - 15. SUBSEQUENTLY, IT CAME TO THE NOTICE OF THE ASSESSEE THAT PAYMENTS SO MADE ARE NOT CHARGEABLE TO TAX UNDER INDIAN INCOME TAX ACT IN THE HANDS OF THE NON - RESIDENTS AND HENCE NO TAX IS LIABLE TO BE DEDUCTED FROM SUCH PAYMENTS. ACCORDINGLY, THE ASSESSEE TREATED TDS AMOUNT SO PAID AS EXCESS PAYMENT OF TDS AMOUNT. SUBSEQUEN TLY THE ASSESSEE ADJUSTED THE SAME AGAINST TDS AMOUNT PAYABLE IN THE FOURTH QUARTER OF F.Y. 2014 - 15. HE SUBMITTED THAT THE CBDT, VIDE ITS CIRCULAR NO. E - 257 DATED 12.9.2014 , HAS CLARIFIED THAT EXCESS ACCENTURE SERVICES PVT. LTD. 2 AMOUNT OF TDS PAID IN A PARTICULAR QUARTER CAN BE CLAIM ED IN THE FOLLOWING QUARTER S OF THE RELEVANT YEAR. ACCORDINGLY, LEARNED AR SUBMITTED THAT THE ACTION OF THE ASSESSEE IN ADJUSTING THE EXCESS PAYMENT OF TDS AGAINST TAX LIABILITY OF FOURTH QUARTER IS PERFECTLY IN TUNE WITH THE CIRCULAR ISSUED BY CBDT. 3. HE SUBMITTED THAT THE TDS RETURNS ARE PROCESSED ELECTRONICALLY, IT DID NOT PERMIT ADJUSTMENT OF EXCESS PAYMENT IN THE FOURTH QUARTER AND ACCORDINGLY DEMAND OF RS. 15,00,363/ - WAS RAISED ON THE ASSESSEE ALONG WITH CONSEQUENTIAL INTEREST. THE LD A.R SUBMIT TED THAT THE LD CIT(A) ACCEPTED THAT SUCH KIND OF ADJUSTMENT IS PERMISSIBLE, BUT STILL CONFIRMED THE DEMAND RAISED. 4. THE L EARNED AR SUBMITTED THAT IT HAS COME TO THE KNOWLEDGE OF THE ASSESSEE THAT THE ASSESSING OFFICER IS EMPOWERED TO MAKE SUCH KI ND OF ADJUSTMENT S MANUALLY , I.E., ADJUSTMENT OF EXCESS PAYMENTS MADE IN SECOND QUARTER AGAINST THE DEMAND RAISED IN THE FOURTH QUARTER . ACCORDINGLY HE PRAYED THA T THE ASSESSING OFFICER MAY KIND LY BE DIRECTED TO MAKE ADJUSTMENT MANUALLY IN ORDER TO GIVE SE T OFF OF EXCESS PAYMENT OF TDS MADE IN THE SECOND QUARTER OF F.Y. 2014 - 15 AGAINST TDS LIABILITY OF FOURTH QUARTER OF F.Y. 2014 - 15. HE SUBMITTED THAT, IF SAID ADJUSTMENT IS SO MADE , THEN INTEREST LIABILITY WOULD ALSO GO. 5 . WE HEARD LEARNED DR AND PERUSED THE RECORD. THERE SHOULD NOT BE ANY DISPUTE THE ADJUSTMENT CLAIMED BY THE ASSESSEE IS IN ACCORDANCE WITH THE CIRCULAR ISSUED BY CBDT. ACCORDING TO LD A.R, I F SUCH KIND OF ADJUSTMENT COULD NOT BE MADE ELECTRONICALLY, THE ASSESSING OFFICERS ARE AUTHORIZED TO DO THE SAME. THE LD D.R DID NOT CONTROVERT THE SUBMISSIONS SO MADE BY LD A.R. ACCORDINGLY WE DIRECT THE ASSESSING OFFICER TO DO THE ADJUSTMENT S MANUALLY AFTER SATISFYING HIMSELF ABOUT THE CLAIM OF THE ASSESSEE. ACCORDING TO LD A.R, THERE WILL NOT BE ANY INTEREST LIABILITY IF THE ADJUSTMENT AS REQUESTED BY THE ASSESSEE IS MADE. THE ASSESSING OFFICER MAY TAKE APPROPRIATE DECISION IN ACCORDANCE WITH LAW WITH REGARD TO INTEREST LIABILITY . ACCENTURE SERVICES PVT. LTD. 3 6 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS TREATED AS A LLOWED. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 27 . 0 2 .201 8 . SD/ - SD/ - (PAWAN SINGH ) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 27 / 0 2 / 20 1 8 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// SENIOR P RIVATE S ECRETARY PS ITAT, MUMBAI